Sean Owns Stock in the Cardinal Corporation

question 20

Multiple Choice

Sean owns stock in the Cardinal Corporation.All of the shareholders have agreed that if one wants to sell his or her shares,he or she must offer to sell them to the other shareholders.If the other shareholders do not buy the shares,the selling shareholder may sell them to anyone else.This type of arrangement is known as a(n) :

• A) buy-sell agreement
• B) right of first refusal
• C) preemption agreement
• D) quorum agreement
• E) close corporation agreement

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold on the open market.

Reasonable Opportunity

An equitable chance or fair circumstance that allows an individual to perform an action or fulfill an obligation.

Inspect

To look at something or someone carefully in order to detect flaws, errors, or compliance with standards.

Rightfully Rejects

A term referring to the legal right of a party to refuse acceptance of goods or services that do not meet the agreed-upon specifications or contract terms.